Petkim Petrokimya Holding Anonim Sirketi (PETKM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was ₺17.7 billion, down from ₺22.88 billion in Q1 2024, reflecting a challenging market and margin pressure.

• Net loss for Q1 2025 was -₺2.6 billion, a reversal from a ₺1.15 billion profit in Q1 2024, driven by lower sales and higher costs.

• EBITDA was -₺0.8 billion, with a -5% margin; EPS was -1.02 TL, down 65% quarter-over-quarter.

• Moody's downgraded the credit rating from B3 to Caa1 with a negative outlook.

• The company operates mainly in petrochemicals, with additional port operations.

Financial highlights

• Net sales declined 4% sequentially to ₺17.7 billion; net loss widened to -₺2.6 billion, a 65% increase quarter-over-quarter.

• Gross margin deteriorated to -6% from -3% in the previous quarter; gross loss was ₺988.5 million.

• Net debt rose to ₺46.8 billion at March 31, 2025, up from ₺39.1 billion at year-end 2024.

• Cash position fell 60% to ₺3.6 billion; net cash used in operations was ₺7.1 billion.

• Total assets at March 31, 2025 were ₺133.91 billion; equity declined to ₺59.81 billion.

Outlook and guidance

• Investments planned in new ethylene, PP, and HDPE/LLDPE plants, with final decisions targeted for 2026.

• STAR Rafineri expected to remain a stable dividend contributor in the medium term.